Friday’s (Aug 26) new energy price cap announcement by Ofgem risks causing “extreme hardship for thousands of older people who only have the basic state pension as their source of income”, says a Southampton Charity.
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Ofgem announced the energy price cap will increase to £3,549 per year for dual fuel for an average household from October 1, 2022.
Age UK Southampton said for those already struggling to afford the basics, the new cap represents over 19% of a couple’s income, which is almost twice the 10% definition of fuel poverty.
The charity said that “many will find themselves having to choose between eating or heating this winter”.
Chief officer Peter Bennie warned: “At a time when the NHS is struggling, fuel poverty will result in additional pressures for the health service. Fuel poverty is when someone can't afford to heat their home properly; key factors that contribute towards fuel poverty are high fuel costs, low income and poor energy efficiency in the home.”
He continued: “Our charity is putting additional resources in place to help older residents this winter, but we are in need of more resources, including volunteers to support people with welfare benefits checks and applying for this year’s Warm Homes Discount.”
Ofgem said the increase “reflects the continued rise in global wholesale gas prices, which began to surge as the world unlocked from the Covid pandemic and have been driven still higher to record levels by Russia slowly switching off gas supplies to Europe”.
Ofgem CEO Jonathan Brearley said the response would need to “match the scale of the crisis we have before us”.
• You can find out more about volunteering and help available from Age UK Southampton by calling 023 8036 8636, visiting their website www.ageuksouthampton.org.uk or emailing This email address is being protected from spambots. You need JavaScript enabled to view it.
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Which? Use our calculator: How much will your energy bills be in October 2022?
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